Transport and safety regulations are holding back what could be a central Australian industry, one peak body says.

The Australian Food and Grocery Council has called on the Federal Government to help tackle the burdens of excessive regulation, outdated transport rules and inflexible workplace awards.

The AGFC details the conditions it sees as constricting the $311.4 billion Australian food industry in its new report, From Paddock to Plate.

The report recommends the introduction of a national body to monitor unnecessary regulation in the food industry, to meet a Coalition made an election promise to cut red tape for small business.

One recommendation is for a Production Commission inquiry to seek out any doubling-up of regulations across local, state and federal government levels.

The National Farmers' Federation’s (NFF) submission to the report followed this line, saying the Federal Government had already made progress with the AgVet chemical registration process and “one-stop-shop” environmental approval processes.

NFF policy director Tony Maher said transport rules for the sector should be over-hauled too.

Mr Mahar says the lengthy processes for road access permits, vehicle access permits, vehicle specifications, loading limitation and curfews on travel times all work together to destroy potential productivity.

The report calls for a reworking of labour laws to respond to the modern state of grocery shopping.

“Generally speaking, labour laws in Australia are based on the assumption that the labour needs of the agricultural, processing, transportation and retail sector can be achieved through the standard 9 to 5 work schedules,” the report states.

“[But] the reality is that the agricultural production and food processing sectors’ labour needs spike significantly during short but intensive harvest times; the transportation sector’s work is regularly conducted during night hours; and the retail sector services customers primarily during weeknights, weekends and peak seasonal times.”

“As a result, the real wages that are paid in these industries are significantly higher than other industries when overtime and penalty rates are considered.”